United States of America: Issued Interim ruling in SEC lawsuit against Mango DAO and Blockworks Foundation for alleged violation of registration requirements for crypto brokers

On 27 September 2024, the Securities and Exchange Commission (SEC) filed charges against Mango DAO, Blockworks Foundation, and Mango Labs LLC for their involvement in the unregistered offer and sale of 'MNGO' tokens and for acting as unregistered brokers on the Mango Markets platform. The charges, filed in the US District Court for the Southern District of New York, allege that these entities engaged in activities that deprived investors of the protections afforded by federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. The entities have agreed to settle the charges by consenting to injunctions and orders to pay civil penalties totalling nearly USD 700'000, in addition to agreeing to destroy their MNGO tokens and to cease soliciting trading platforms for the trading or offering of MNGO tokens. The settlements are pending court approval.